India is strategically positioned to emerge as a global leader in the green hydrogen economy, according to a new analysis from S&P Global Commodity Insights. The assessment, presented at the World Hydrogen India summit, cites the country's ambitious production targets, rapidly declining costs, and comprehensive policy framework as unparalleled drivers that could catapult it to the forefront of the clean energy transition.

This optimistic outlook is grounded in concrete government action. The National Green Hydrogen Mission, with a target of producing 5 million metric tonnes per annum by 2030, is expected to attract approximately $100 billion in investments and create over 600,000 new jobs. Union Minister Pralhad Joshi reinforced this, stating, “Our goal will be supported by an addition of 125 GW of renewable energy capacity, and we are already fostering a vibrant ecosystem from R&D to skilling.” The government has already allocated USD 43.3 million for research and development, sanctioning 23 initial projects.

A critical indicator of this accelerating momentum is the dramatic fall in production costs. Recent tenders floated by state-owned oil marketing companies have discovered green hydrogen prices as low as USD 4.4-4.5 per kg, a reduction of over USD 1 per kg from previous levels. In a significant endorsement of long-term viability, infrastructure major Larsen & Toubro (L&T) quoted a competitive, tax-inclusive price of USD 4.5 per kg for a 25-year supply to Indian Oil Corporation's Panipat refinery.

S&P Global's report projects that hydrogen's share in India's energy demand will rise to over 3% by 2060, with a staggering 80% of domestic production being met by green hydrogen. This shift is part of a broader global trend where hydrogen demand could grow 3.5 times. The analysis suggests that India's ability to discover the world's most competitive prices for green ammonia—at approximately 55 US cents per kg—demonstrates its potential not only for self-reliance but also as a major export hub.

For industry leaders like L&T, this macro-analysis validates strategic investments in developing end-to-end capabilities. The convergence of strong policy support, proven project economics, and world-class engineering talent creates a powerful synergy. As India's green hydrogen journey moves from vision to action with incredible speed, companies with integrated solutions—from renewable EPC and electrolyser manufacturing to project development—are poised to play a pivotal role in establishing the nation's leadership on the global stage.

Source: 

https://energy.economictimes.indiatimes.com/news/renewable/india-set-to-lead-global-green-hydrogen-push-sp-global/124115614